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HomeMy WebLinkAbout2017 CON (DEED OF TRUST and CC&R's) Jose Lojero and Blanca Chavez - 1925 Villa Las Palmas #45FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 Recording Requested By And When Recorded Mail To: City of National City Housing, Grants, and Asset Management 1243 National City Boulevard National City, CA 91950 DOC# 2017-0509043 IIII II1111111111 IIIIIIIIIIII II1111IIIIII IIII IIIII I111111111 III Nov 01, 2017 08:00 AM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $0.00 PAGES: 14 [RECORD AFTER THE CC&R'S] DEED OF TRUST (HUD HOME Program 3% Deferred) City Loan No. 17NC3 THIS DEED OF TR UST IS BEING RECORDED ONLY TO CORRECT THE BENEFICIARY/LENDER NAME SHOWN ON THE DEED OF TRUST RECORDED FEBR UARY 27, 2017 AS INSTRUMENT NUMBER 2017-0092831 THIS DEED OF TRUST ("Deed of Trust") is made this 24th day of February, 2017, among the Trustor, JOSE A LOJERO, a married man as his sole and separate property and BLANCA ARACELI CHAVEZ a single woman as ioint tenants ("Borrower"), the trustee, TITLE365 ("Trustee"), and the Beneficiary, City of National City ("Lender"), whose address is 1243 National City Boulevard, National City, California 91950. BORROWER HEREBY irrevocably grants, transfers, and assigns to Trustee, in trust, with power of sale, all that property in the City of National City, County of San Diego, State of California, described as: (See Legal Description - Exhibit "A") which has the address of 1925 Via Palmas Unit 45 National City, CA 91950, San Diego, California (herein "Property Address"); TOGETHER with all the improvements now and hereafter erected on the Property, and all easements, rights, appurtenances and rents (subject, however, to the rights and authorities given herein to Lender to collect and apply such rents), all of which shall be deemed to be and remain part of the property covered by this Deed of Trust; and all of the foregoing, together with said property, are hereinafter referred to as the "Property"; CITY OF NATIONAL CITY PAGE 1 OF 12 HOME -DEED OF TRUST TO SECURE to Lender: (A) Repayment of the indebtedness evidenced by the Promissory Note (HUD HOME Program three percent (3%) Deferred) of even date herewith, and extensions and renewals thereof, in the principal sum of Seventy Thousand U.S. Dollars ($70,000.00) ("HOME Note") made by Borrower in favor of the Lender; (B) The performance of each agreement and covenant of Borrower under that certain Declaration of Covenants, Conditions and Restrictions (HUD HOME Program 3% Deferred) ("Declaration") of even date herewith and recorded concurrently herewith affecting the Property; (C) The payment of all other sums, with interest thereon, advanced to protect the security of this Deed of Trust; and (D) The performance of the covenants and agreements of Borrower contained herein. BORROWER covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that Borrower is unencumbered except for encumbrances of record. Borrower covenants that Borrower warrants, and will defend generally, the title to the Property against all claims and demands, subject to encumbrances of record. UNIFORM COVENANTS Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest evidenced by the HOME Note. 2. Funds for Taxes and Insurance. To protect the security of this Deed of Trust, Borrower agrees to pay, at least ten (10) days before delinquency, all taxes and assessments affecting the Property, including assessments on appurtenant water stock, all encumbrances, charges and liens, with interest, on the Property or any part thereof, which appear to be prior or superior hereto, and all costs, fees and expenses of this Trust. Should Borrower fail to make any payment or fail to do any act as herein provided, then Lender or Trustee, without obligation to do so and without notice to or demand upon Borrower and without releasing Borrower from any obligation hereof, may make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Lender or Trustee being authorized to enter upon the Property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Lender or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either Lender or Trustee appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. 3. Application of Payments. All payments received by Lender under the HOME Note shall be applied by Lender first in payment of amounts due to Lender by Borrower, then to interest payable on the HOME Note, and then to the principal of the HOME Note. CITY OF NATIONAL CITY PAGE 2 OF 12 HOME -DEED OF TRUST 4. Prior Mortgages and Deeds of Trust; Charges, Liens. Borrower shall perform all of Borrower's obligations under any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust, including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust, and leasehold payments, if any. 5. Hazard Insurance. Borrower shall keep the improvement(s) now existing or hereinafter erected on the Property insured against loss by fire, hazards included within the terms "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided that such approval will not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable to Lender and shall include a standard mortgagee clause in favor of and in a form acceptable to Lender. Lender has the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. If Property is abandoned by Borrower, or if Borrower fails to respond to Lender within thirty (30) days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Deed of Trust. 6. Preservation and Maintenance of Property. Borrower will keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in a condominium or planned unit development, Borrower shall perform all of Borrower's obligations under the declaration of covenants, conditions and restrictions creating or governing the condominium or planned unit development, the bylaws and regulations of the condominium or planned unit development, and constituent documents. Borrower shall maintain the Property in conformance with all applicable state, federal, and local laws, ordinances, codes and regulations. In the event that Borrower fails to maintain the Property in accordance with these standards and after at least thirty (30) business days prior to the notice to Borrower, the City or the City's Contractor or Agent may, but shall be under no obligation to, enter upon the Property, make such repairs or replacements as are deemed necessary in the City's discretion, and provide for payment thereof. Any amount advanced by the City to make such repairs, together with interest thereon from the date of such advance at the rate of seven (7%) percent (unless payment of such an interest rate would be contrary to applicable law, in which event such sums shall bear interest at the highest rate then allowable by applicable law), shall become an additional obligation to the Borrower to the City and shall be secured by the Deed of Trust, if not previously reconveyed. 7. Protection of Lender Security. If Borrower fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, then Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums including reasonable attorneys' fees, and take such action as is necessary to protect Lender's interest. If Lender's required hazard insurance is a condition of making CITY OF NATIONAL CITY PAGE 3 OF 12 HOME -DEED OF TRUST the loan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law. Any amounts disbursed by Lender pursuant to this Section, with interest thereon at the rate of ten percent (10%) per annum, will become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts will be payable upon notice from Lender to Borrower requesting payment thereof. Nothing contained in this Section will require Lender to incur any expense or take any action hereunder. 8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that Lender will give Borrower notice prior to any such inspection, specifying reasonable cause therefor related to Lender's interest in the Property. 9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust. 10. Borrower Not Released; Forbearance by Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Deed of Trust granted by Lender to any successor in interest of Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Deed of Trust by reason of any demand made by the original Borrower and Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. 11. Successors and Assigns Bound, Joint and Several Liability. The covenants and agreements contained herein shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and Borrower, subject to the provisions of Section 15 hereof. All covenants and agreements of Borrower shall be joint and several. 12. Notice. Except for any notice required under applicable law to be given in another manner: (a) any notice to Borrower provided for in this Deed of Trust shall be given by delivering it or by mailing such notice by certified mail, addressed to Borrower at the Property Address; and (b) any notice to Lender will be given by certified mail, return receipt requested, to Lender's address stated herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any Notice provided for in this Deed of Trust shall be deemed to have been given to Borrower or Lender when given in the manner designated herein. CITY OF NATIONAL CITY PAGE 4 OF 12 HOME -DEED OF TRUST 13. Governing Law, Severability. The state and local laws applicable to this Deed of Trust shall be the laws of the jurisdiction in which the Property is located. The foregoing sentence shall not limit the applicability of federal law to this Deed of Trust. In the event that any provision or clause of this Deed of Trust or the HOME Note conflicts with applicable law, such conflict shall not affect other provisions of this Deed of Trust or the HOME Note which can be given effect without the conflicting provision and, to this end, the provisions of this Deed of Trust and the HOME Note are declared to be severable. As used herein, "costs," "expenses" and "attorneys' fees" include all sums to the extent not prohibited by applicable law or limited herein. 14. Borrower's Copy. Borrower shall be furnished a conformed copy of the HOME Note and this Deed of Trust at the time of execution or after recordation hereof. 15. Due on Sale, Breach or 30-Years. (a) Payment. Borrower shall pay principal and all accrued interest (either simple interest or default interest, as the case may be) on the HOME Note, in one lump sum, to Lender upon the earliest of: (1) a Sale (as defined in Section 15(b), below); (2) a default after completion of the applicable acceleration procedures set forth in Section 16, below; or (3) thirty (30) years from the date of the HOME Note. Borrower shall make any payments at the City of National City Finance Department's office located at 1243 National City Boulevard, National City, California 91950, or such other place as designated by Lender. (d) Sale Defined. The following shall all be considered transfers or sales of the Property and shall be referred to herein generally as a "Sale": (i) all or any part of the Property or any interest in the Property is sold, conveyed or transferred; (ii) if Borrower is not a natural person and a beneficial interest in Borrower is sold, conveyed or transferred; (iii) all or any part of the Property is refinanced or further encumbered, except as otherwise allowed by law; (iv) Borrower does not occupy the Property as his, her, or their, primary residence; (v) the leasing or renting of all or any part of the Property; (vi) any material breach of the HOME Note, the Declaration, this Deed of Trust, or any other agreement or obligation secured by the property; or (vii) the filing of bankruptcy by the Borrower. Notwithstanding the foregoing, a refinancing of the Property shall not be considered a default, provided the Lender provides written consent to Borrower prior to the refinancing, which consent may be granted or withheld in the sole and absolute discretion of the Lender. (c) No Assumption of Note. The HOME Note may not be assumed by any person, except as otherwise allowed by law. NON -UNIFORM COVENANTS Borrower and Lender further covenant and agree as follows: 16. Acceleration (Default), Remedies. Upon Borrower's default (or breach) of this Deed of Trust, the HOME Note, Declaration, or any other document secured by this Deed of Trust, the CITY OF NATIONAL CITY PAGE 5 OF 12 HOME -DEED OF TRUST Declaration and/or the Property, Lender, prior to acceleration, shall give notice to Borrower as provided in Section 12 hereof specifying: (a) the breach; (b) the action required to cure such breach; (c) a date, not less than ten (10) days from the date the notice is mailed to Borrower, by which such breach must be cured; and (d) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the notice, Lender, at Lender's option, may declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this Section 16, including, but not limited to, reasonable attorneys' fees. If Lender invokes power of sale, Lender shall execute or cause Trustee to execute a written notice of the occurrence of an event of default and of Lender's election to cause the Property to be sold and shall cause such notice to be recorded in each county in which the Property or some part thereof is located. Lender or Trustee shall mail copies of such notice in the manner prescribed by applicable law. Trustee shall give public notice of sale to the persons and in the manner prescribed by law. After the lapse of such time as may be required by applicable law, Trustee, without demand on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels and in such order as Trustee may determine. Trustee may postpone sale of all or any parcel of the Property by public announcement at the time and place of any previously scheduled sale. Lender or Lender's designee may purchase the Property at any sale. Trustee shall deliver to the purchaser Trustee's deed conveying the Property so sold without any covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale in the following order: (1) to all reasonable costs and expenses of the sale, including, but not limited to, reasonable Trustee's and attorneys' fees and costs of title evidence; (2) to all sums secured by this Deed of Trust; and (3) the excess, if any, to the person or persons legally entitled thereto. CITY OF NATIONAL CITY PAGE 6 OF 12 HOME -DEED OF TRUST 17. Borrower's Right to Reinstate. (a) Curable Breach. Notwithstanding Lender's acceleration of the sums secured by this Deed of Trust due to Borrower's breach (default), Borrower shall have the right to have any proceedings begun by Lender to enforce this Deed of Trust discontinued at any time prior to five (5) days before the sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust if: (1) Borrower pays Lender all sums which would be then due under this Deed of Trust and the HOME Note had no acceleration occurred; (2) Borrower cures all breaches of any other covenants or agreements of Borrower contained in this Deed of Trust; (3) Borrower pays all reasonable expenses incurred by Lender and the Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust, including, but not limited to, reasonable attorneys' fees; and (4) Borrower takes such action as Lender may reasonably require to assure that the lien of this Deed of Trust, Lender's interest in the Property and Borrower's obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by Borrower as set forth in this Section 17(a), this Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred. (b) Non -Curable Breach. (1) Failure to Occupy/Renting Out the Property is a Violation of Law. Borrower hereby acknowledges that the loan evidenced by the HOME Note and secured by this Deed of Trust was funded by Lender using U.S. Department of Housing and Urban Development ("HUD") Home Investments Partnership Act ("HOME") funds. Section 215 of the HOME Investment Partnerships Act (42 U.S.C. §12745) and the HOME program regulations (24 C.F.R. §92.254) require Borrower to occupy the Property as Borrower's principal residence. Renting out the Property (in whole or in part) and/or Borrower's failure to occupy the Property as Borrower's principal residence is a violation of State of California and Federal law (in addition to being a violation of the HOME Note, Declaration and this Deed of Trust). Lender is obligated by Federal law to enforce the provisions of the HOME program, Lender's failure to do so would jeopardize the Lender's ability to obtain additional HOME funds from HUD and help other low-income families to obtain affordable housing. (2) Failure to Occupy/Renting Out the Property Materially Impairs Lender's Security. Borrower hereby acknowledges and agrees that renting out the Property (in whole or in part) and/or Borrower's failure to occupy the Property as Borrower's principal residence, materially impairs the Lender's security for the loan and the Lender's ability to obtain additional HOME funds from HUD and help other low-income families to obtain affordable housing. Borrower further CITY OF NATIONAL CITY PAGE 7 OF 12 HOME -DEED OF TRUST acknowledges that if the Property is rented out (in whole or in part) and/or Borrower fails to occupy the Property as Borrower's principal residence, then during any such period the Property will not qualify as "affordable housing" and the Lender may be in breach of its obligations to HUD and therefore the Lender's security for the loan will be materially impaired. (3) Failure to Occupy/Renting Out the Property is a Non -Curable Breach. Borrower hereby acknowledges and agrees that renting out the Property (in whole or in part) and/or Borrower's failure to occupy the Property as Borrower's principal residence, will be a non -curable breach and the Lender shall have the right to accelerate the loan and foreclose on the Property as provided herein. Notwithstanding anything to the contrary set forth in this Deed of Trust, Borrower agrees that in the event Borrower rents out the Property and/or fails to occupy the Property as Borrower's principal residence, Borrower shall not have the right to cure the breach and reinstate the loan, this Deed of Trust or the obligations secured hereby. (4) Borrower's Waiver. Borrower hereby knowingly waives and relinquishes any and all legal and/or contractual rights Borrower may have to cure or otherwise reinstate this Deed of Trust and the obligations secured hereby, in the event that Property is rented out (in whole or in part) and/or Borrower fails to occupy the Property as Borrower's principal residence. (5) Representation of Comprehension. Borrower acknowledges and agrees that Lender has advised Borrower (and each of them if there is more than one Borrower) to retain an attorney to represent Borrower with respect to the loan secured by this Deed of Trust. By executing this Deed of Trust, Borrower (and each of them if there is more than one Borrower) represents that: (i) Borrower fully understands and accepts the terms of this Deed of Trust, the HOME Note and Declaration; (ii) Borrower has relied upon the legal advice of Borrower's attorneys or that Borrower has freely and independently chosen not to seek the advice of an attorney; (iii) that neither the Lender nor its attorneys represents Borrower; (iv) that Borrower has had a full and ample opportunity to consult with any other professionals of Borrower's choice in connection with the rights and liabilities created by this Deed of Trust, the HOME Note and Declaration; (v) that Borrower does not have any questions with regard to the legal import of any term, word, phrase, or portion of this Deed of Trust, the HOME Note or Declaration, or any of the foregoing documents in their entireties; and (vi) Borrower accepts the terms of this Deed of Trust, the HOME Note and Declaration as written. 18. Assignment of Rents; Appointment of Receiver; Lender in Possession. As additional security hereunder, upon acceleration of the HOME Note or abandonment of the Property, Lender, in person, by agent or by judicially appointed receiver shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property including those past due. All rents collected by Lender or the receiver shall be applied first to payment of the cost of management of the Property and collection of rents, including, but not limited to, receiver's fees, premiums on receiver's bonds and reasonable attorneys' fees, and then to the sums secured by this Deed of Trust. Lender and the receiver shall be liable to account only for those rents actually received. 19. Reconveyance. Upon satisfaction of both of the following conditions: (i) payment of all sums secured by this Deed of Trust and (ii) termination of the Declaration, Lender shall request Trustee to reconvey the Property and will surrender this Deed of Trust and all notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty to the CITY OF NATIONAL CITY PAGE 8 OF 12 HOME -DEED OF TRUST person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. 20. Substitute Trustee. Lender, at Lender's option, may from time to time appoint a successor trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by Lender and recorded in the office of the Recorder of the county where the Property is located. The instrument shall contain the name of the original lender, Trustee and Borrower, the book and page where this instrument is recorded, and the name and address of the successor trustee. The successor trustee shall, without conveyance of the Property, succeed to all the title, power and duties conferred upon the Trustee herein and by applicable law. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution. 21. Request for Notices. Borrower requests that copies of the notice of sale be sent to Borrower's address which is the Property Address. 22. Statement of Obligation. Lender may charge a fee not to exceed the amount allowed by law for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California. 23. Covenants, Conditions and Restrictions. The Property is subject to the Declaration which is not attached hereto but is incorporated herein by reference. Borrower acknowledges receipt of the Declaration and agrees, for himself, his heirs, successors and assigns to be bound by the same. The obligations of Borrower under the Declaration shall be independent of, and in addition to, Borrower's obligations under the HOME Note, and repayment of the HOME Note shall not terminate or otherwise affect the Declaration. 24. Representations and Warranties of Borrower. Borrower represents and warrants, and a violation thereof shall constitute a default/breach of this Deed of Trust, to the Lender as follows: (a) Annual Gross Income. Borrower's annual gross income, including the income of any co -purchasers or co -tenants, at the time of the execution of this Deed of Trust does not exceed eighty percent (80%) of the area median income for the San Diego - Carlsbad -San Marcos Metropolitan Statistical Area, as determined by HUD. (b) Principal Place of Residence. For so long as this Deed of Trust is recorded against the Property, Borrower will reside in the Property as Borrower's principal place of residence. The Borrower shall be considered as occupying the Property as a principal place of residence if the Borrower is living on the Property for at least ten (10) months out of each calendar year. Borrower agrees not to neglect, sublet, lease or rent out all or any portion of the Property during such period. (c) Liquid Assets. At the time of the execution of this Deed of Trust, Borrower, including any co -purchasers or co -tenants, and any other household members, does not hold, directly or indirectly, "liquid assets", as defined below, whose aggregate value exceeds $25,000 As used herein, the term "liquid assets" refers to cash and assets which are readily convertible to cash within a reasonable period, including but not limited to savings and checking accounts, certificates of deposit of any term, CITY OF NATIONAL CITY PAGE 9 OF 12 HOME -DEED OF TRUST marketable securities, money market and similar accounts, mutual fund shares, and insurance policy cash values. The term "liquid assets" shall not include retirement funds which are not readily accessible or which cannot be accessed by the buyer without the buyer incurring a penalty. (d) Not a Full -Time Student. Borrower is not, and none of the co -purchasers or co- tenants of Borrower are, a full-time student, or a household comprised exclusively of persons who are full-time students, unless such persons are married and eligible to file a joint federal income tax return. The term "full-time student" shall be defined as any person who will be or has been a full-time student during five calendar months of the calendar year in question at an educational institution (other than a correspondence school) with regular faculty and students. (e) Not a Student Dependent. Borrower is not, and none of the co -purchasers or co- tenants of Borrower are, a student dependent as defined in the U.S. Internal Revenue Code, unless the taxpayer (upon whom the student in question is dependent) resides in the Property. (f) Not an Owner of Real Property. Borrower does not, and none of the co -purchasers of Borrower, own any real property at the time of escrow closing for the subject Property. (g) First -Time Home Buyer, Displaced Homemaker or Single Parent. Borrower satisfies at least one of the following criteria: (1) Borrower is a first-time home buyer; that is, he or she has not owned a home within the three-year period immediately preceding the date of this Deed of Trust; (2) Borrower is a displaced homemaker as defined in 24 C.F.R. §92.2; or (3) Borrower is a single parent as defined in 24 C.F.R. §92.2. 25. Request for Notice of Default. Lender requests that copies of notices of foreclosure from the holder of any lien which has priority over this Deed of Trust be sent to Lender's address, as set forth on page 1 of this Deed of Trust, as provided by Section 2924b of the Civil Code of California. 26. Refinancing. Neither the Property, nor any portion thereof, shall be refinanced without the written consent of the Lender, except as otherwise allowed by law. The Lender may withhold any such consent in its sole and absolute discretion, nothing contained herein shall obligate the Lender to agree to Borrower's request to refinance the Property or any portion thereof. 27. Severability. If any provision of this Deed of Trust is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this Deed of Trust and the remaining provisions shall continue in full force and effect. CITY OF NATIONAL CITY PAGE 10 OF 12 HOME -DEED OF TRUST 28. Usury Savings Clause. If a court of competent jurisdiction determines, by way of final unappealable order or judgment that the interest rate charged under the HOME Note is usurious, then such rate shall automatically and retroactively be reduced to the maximum rate allowed under applicable law. 29. Waiver by Lender. Any provision hereof, including without limitation, the requirement that Borrower occupy the Property, may be waived only with the advance written approval of the Lender and HUD for good cause shown. 30. Subordination of Deed of Trust. Borrower concurrently has executed a deed of trust or mortgage in favor of MANN MORTGAGE LLC ("Senior Deed of Trust"). This Deed of Trust is subordinate to the Senior Deed of Trust on the Property, which the Senior Deed of Trust is senior in recording priority to this Deed of Trust. Any party, and its successors and assigns, receiving title to the Property through a trustee's sale, judicial foreclosure sale, or deed in lieu of foreclosure of such Senior Deed of Trust, or assignment of the Senior Deed of Trust to the Secretary of U.S. Department of Housing and Urban Development, and any conveyance or transfer thereafter, shall receive title free and clear of the provisions of this Deed of Trust. 31. HOME Period. The loan evidenced by the HOME Note and secured by this Deed of Trust was funded by Lender using U.S. Department of Housing and Urban Development ("HUD") Home Investments Partnership Act ("HOME") funds. The HOME program regulations (24 C.F.R. Part 92), apply for a period of 15 years, from the date of recordation of this Deed of Trust. Beginning 15 years after the date of recordation of this Deed of Trust, and for the remainder of the term of the HOME Note, the Property will continue to be subject to this Deed of Trust, but shall no longer be subject to the HOME program regulations. IN WITNESS WHEREOF, Borrower has executed this Deed of Trust. Date: Date: j0/24/ Borrowe se A Lojero hrni j Y(Ce Borrower: Blanca Araceli Chavez CITY OF NATIONAL CITY HOME -DEED OF TRUST PAGE 11 OF 12 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego ) tioA O�' /D/2 cy /i/7- • , 20/R, - before me, Z /U1 r'i ©, i41 c zl. _ I notary public personally appeared jo Se- 4 . jLAfe r d who proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity on behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public (Seal) ELVIRA O. ALCALA COMM. #2054718 a NOTARY PUBLIC • CALIFORNIA 3 SAN DIEGO COUNTY Commission Exires Feb. 2, 2018 CITY OF NATIONAL CITY DEED OF TRUST ACKNOWLEDGMENT ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego On 7� lvif 20 before me, notary public personally appeared B/a n c a— 4j- ce_/ ; C a U-e who proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity on behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature SignaturR'"A Public (Seal) ELVIRA O ; ALA COMM. #2054718 w NOTARY PUBLIC • CALIFORNIA a SAN DIEGO COUNTY ' Commission Expires Feb. 2, 2018 CITY OF NATIONAL CITY DEED OF TRUST ACKNOWLEDGMENT EXHIBIT "A" Legal Description of the Property Property Address: 1925 Via Palmas Unit 45 National City, CA 91950, National City, California The land hereinafter referred to is sluated in the City of National City, County of San Diego, State of CA, and is described as follows: A Condominium Comprised of: Parcel 1: An undivided one forty-eight (1/48th) interest in and to Lots 1 and 2 of Las Palmas Park Villas, in the City of National City, County of San Diego, State of Califomia, according to Map thereat No. 9128, Recorded in the office of the County Recorder of San Diego County, on February 27, 1979. Excepting therefrom all living units, storage rooms and garages as shown upon that certain Las Palmas Park Villas Condominium Plan Recorded in the office of the County Recorder of San Diego County on February 7, 1980, Recorders File No. 80-044195. And further excepting therefrom the following: The right to possession of afl those areas designated as patios, balconies, and assigned parking spaces as shown on said Condominium Pan referred to above Parcel 2: Living Unit No. 45, Garage No. 35 and Storage Roam, as shown upon the Condominium Plan referred to above. Parcel3: The exclusive right to use, possession and occupancy of those portions of Lots 1 and 2 described in Parcel 1 above, designated as assigned Parking Space, Patio 45 and Balcony, on the Condominium Plan referred to above,.whicti right is appurtenant to Parcels 1 and 2 above describer/. Parcel 4: A non-exclusive easement for ingress, egress and recreational use over the Common Areas of Lots 3 and 4 as shown on Map No. 9128 filed in the Office of the County Recorder of San Diego, California, on February 27, 1979 which easement is appurtenant to Parcels 1, 2 and 3 describe a above. This easement shall become effective as to each of said Lots 3 and 4, respectively, upon recortafon of a Declaration of Annexation declaring such Lots, respectively,. to be subiect to the Declaration of Covenants, Conditions and Restrictions to which reference is hereafter made or a separate Deciaration of Covenants, Conditions and Restrictions which requires the owners of said Lots, respectively, to be members of the Las Palmas Park Villas Property Owners Association, all as more fully set forth in the Deciaration to which reference is hereafter made. The Common Area referred to herein as to each of said Lots shall be the same as shown and described on the Condominium Nan referred to above and any amendments or superseding Condominium Plan, excepting therefrom any residential and garage buildings thereon and any portion thereof which is designated as an Excaisive Use Area. APN: 563,460-05-45 CITY OF NATIONAL CITY DEED OF TRUST EXHIBIT "A" The City of National City MEMORANDUM DATE: November 30, 2017 TO: City Clerk's Office FROM: Angelita Palma, Community Development Specialist II Housing & Economic Development Department SUBJECT: HOME Program FTHB Program Recorded Loan Documents Please keep the attached recorded original HOME Program First -Time Homebuyer documents on file: Deed of Trust and Declaration of Covenants Conditions and Restrictions for: Galvez, Daniel 104 N Harbison Avenue Loan #17NC7 APN: 552-330-14-00 Closing Date: 9/15/17 Corrected Deed of Trust for: Gallegos, Carlos C. Ruelas 1213 E Avenue, Unit A3 Loan # 16NC2 APN: 560-410-22-03 Closing Date: 11/1/16 Contreras, Luis Felipe & Monica Marcella Contreras -Gonzalez 1027 East 24th Street Loan # 17NC4 APN: 561-324-05-00 Closing Date: 1/13/17 Saucedo, Benjamin & Angelica Perez Alonzo 2341 Grove Street Loan # 17NC1 Closing Date: 1/13/17 Lojero, Jose & Blanca Araceli Chavez 1925 Via Las Palmas # 45 Loan # 17NC3 APN: 563-460-05-45 Closing Date: 2/27/17 1243 National City Blvd; National City, California 91950 • RECORDING REQUESTED BY TITLE365 FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 Recording Requested By And When Recorded Mail To: DOC# 2017-0092831 IIII II1111111111111111I1I1111111111111111111IIIIIII]I11111I11111111 Feb 27, 2017 04:09 PM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $51.00 PAGES: 13 City of National City Housing, Grants, and Asset Management 1243 National City Boulevard National City, CA 91950 [RECORD AFTER THE CC&R'S] DEED OF TRUST (HUD -HOME Program 3% Deferred) City Loan No. 17NC3 THIS DEED OF TRUST ("Deed of Trust") is made this 24th day of February, 20 7 among the Trustor, JOSE A. LOJERO, a married man as his sole and separate property and BLANCA ARACELI CHAVEZ, a single woman as joint tenants (`Borrower"), the trustee, TITLE365 ("Trustee"), and the Beneficiary, San City of National City ("Lender"), whose address is 1243 National City Boulevard, National City, California 91950. BORROWER HEREBY irrevocably grants, transfers, and assigns to Trustee, in trust, with power of sale, all that property in the City of National City, County of San Diego, State of California, described as: (See Legal Description - Exhibit "A") which has the address of 1925 Via Palmas Unit 45 National City, CA 91950 (herein "Property Address"); TOGETHER with all the improvements now and hereafter erected on the Property, and all easements, rights, appurtenances and rents (subject, however, to the rights and authorities given herein to Lender to collect and apply such rents), all of which shall be deemed to be and remain part of the property covered by this Deed of Trust; and all of the foregoing, together with said property, are hereinafter referred to as the "Property"; TO SECURE to Lender CITY OF NATIONAL CITY PAGE 1 OF 13 HOME -DEED OF TRUST RECORDING REQUESTED BY TITLE365 FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 A Recording Requested By And When Recorded Mail To: City of National City Housing, Grants, and Asset Management 1243 National City Boulevard National City, CA 91950 [RECORD AFTER THE CC&R'S] DEED OF TRUST (HUD HOME Program 3% Deferred) City Loan No. 17NC3 THIS DEED OF TRUST ("Deed of Trust") is made this 24th day of February, 2017, among the Trustor, JOSE A. LOJERO, a married man as his sole and separate property and BLANCA ARACELI CHAVEZ, a single woman as joint tenants ("Borrower"), the trustee, TITLE365 ("Trustee"), and the Beneficiary, San City of National City ("Lender"), whose address is 1243 National City Boulevard, National City, California 91950. BORROWER HEREBY irrevocably grants, transfers, and assigns to Trustee, in trust, with power of sale, all that property in the City of National City, County of San Diego, State of California, described as: (See Legal Description - Exhibit "A") which has the address of 1925 Via Palmas Unit 45 National City, CA 91950 (herein "Property Address"); TOGETHER with all the improvements now and hereafter erected on the Property, and all easements, rights, appurtenances and rents (subject, however, to the rights and authorities given herein to Lender to collect and apply such rents), all of which shall be deemed to be and remain part of the property covered by this Deed of Trust; and all of the foregoing, together with said property, are hereinafter refcired to as the "Property"; TO SECURE to Lender: CITY OF NATIONAL CITY PAGE 1 OF 13 HOME -DEED OF TRUST (A) Repayment of the indebtedness evidenced by the Promissory Note (HUD HOME Program three percent (3%) Deferred) of even date herewith, and extensions and renewals thereof, in the principal sum of Seventy Thousand U.S. Dollars ($70,000.00) ("HOME Note") made by Borrower in favor of the Lender; (B) The performance of each agreement and covenant of Borrower under that certain Declaration of Covenants, Conditions and Restrictions (HUD HOME Program 3% Deferred) ("Declaration") of even date herewith and recorded concurrently herewith affecting the Property; (C) The payment of all other sums, with interest thereon, advanced to protect the security of this Deed of Trust; and (D) The performance of the covenants and agreements of Borrower contained herein. BORROWER covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that Borrower is unencumbered except for encumbrances of record. Borrower covenants that Borrower warrants, and will defend generally, the title to the Property against all claims and demands, subject to encumbrances of record. UNIFORM COVENANTS Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal and interest evidenced by the HOME Note. 2. Funds for Taxes and Insurance. To protect the security of this Deed of Trust, Borrower agrees to pay, at least ten (10) days before delinquency, all taxes and assessments affecting the Property, including assessments on appurtenant water stock, all encumbrances, charges and liens, with interest, on the Property or any part thereof, which appear to be prior or superior hereto, and all costs, fees and expenses of this Trust. Should Borrower fail to make any payment or fail to do any act as herein provided, then Lender or Trustee, without obligation to do so and without notice to or demand upon Borrower and without releasing Borrower from any obligation hereof, may make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Lender or Trustee being authorized to enter upon the Property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Lender or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either Lender or Trustee appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. 3. Application of Payments. All payments received by Lender under the HOME Note shall be applied by Lender first in payment of amounts due to Lender by Borrower, then to interest payable on the HOME Note, and then to the principal of the HOME Note. 4. Prior Mortgages and Deeds of Trust; Charges, Liens. Borrower shall perform all of Borrower's obligations under any mortgage, deed of trust or other security agreement with a lien CITY OF NATIONAL CITY PAGE 2 OF 13 HOME -DEED OF TRUST which has priority over this Deed of Trust, including Borrower's covenants to make payments when due. Borrower shall pay or cause to be paid all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust, and leasehold payments, if any. 5. Hazard Insurance. Borrower shall keep the improvement(s) now existing or hereinafter erected on the Property insured against loss by fire, hazards included within the terms "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided that such approval will not be unreasonably withheld. All insurance policies and renewals thereof shall be in a form acceptable to Lender and shall include a standard mortgagee clause in favor of and in a form acceptable to Lender. Lender has the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. If Property is abandoned by Borrower, or if Borrower fails to respond to Lender within thirty (30) days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Deed of Trust. 6. Preservation and Maintenance of Property. Borrower will keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in a condominium or planned unit development, Borrower shall perform all of Borrower's obligations under the declaration of covenants, conditions and restrictions creating or governing the condominium or planned unit development, the bylaws and regulations of the condominium or planned unit development, and constituent documents. Borrower shall maintain the Property in conformance with all applicable state, federal, and local laws, ordinances, codes and regulations. In the event that Borrower fails to maintain the Property in accordance with these standards and after at least thirty (30) business days prior to the notice to Borrower, the City or the City's Contractor or Agent may, but shall be under no obligation to, enter upon the Property, make such repairs or replacements as are deemed necessary in the City's discretion, and provide for payment thereof. Any amount advanced by the City to make such repairs, together with interest thereon from the date of such advance at the rate of seven (7%) percent (unless payment of such an interest rate would be contrary to applicable law, in which event such sums shall bear interest at the highest rate then allowable by applicable law), shall become an additional obligation to the Borrower to the City and shall be secured by the Deed of Trust, if not previously reconveyed. 7. Protection of Lender Security. If Borrower fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, then Lender, at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums including reasonable attorneys' fees, and take such action as is necessary to protect Lender's interest. If Lender's required hazard insurance is a condition of making the loan secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance CITY OF NATIONAL CITY PAGE 3 OF 13 HOME -DEED OF TRUST with Borrower's and Lender's written agreement or applicable law. Any amounts disbursed by Lender pursuant to this Section, with interest thereon at the rate of ten percent (10%) per annum, will become additional indebtedness of Borrower secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts will be payable upon notice from Lender to Borrower requesting payment thereof. Nothing contained in this Section will require Lender to incur any expense or take any action hereunder. 8. Inspection. Lender may make or cause to be made reasonable entries upon and inspections of the Property, provided that Lender will give Borrower notice prior to any such inspection, specifying reasonable cause therefor related to Lender's interest in the Property. 9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Deed of Trust. 10. Borrower Not Released; Forbearance by Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Deed of Trust granted by Lender to any successor in interest of Borrower shall not operate to release, in any manner, the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to commence proceedings against such successor or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Deed of Trust by reason of any demand made by the original Borrower and Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. 11. Successors and Assigns Bound, Joint and Several Liability. The covenants and agreements contained herein shall bind, and the rights hereunder shall inure to, the respective successors and assigns of Lender and Borrower, subject to the provisions of Section 15 hereof. All covenants and agreements of Borrower shall be joint and several. 12. Notice. Except for any notice required under applicable law to be given in another manner: (a) any notice to Borrower provided for in this Deed of Trust shall be given by delivering it or by mailing such notice by certified mail, addressed to Borrower at the Property Address; and (b) any notice to Lender will be given by certified mail, return receipt requested, to Lender's address stated herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any Notice provided for in this Deed of Trust shall be deemed to have been given to Borrower or Lender when given in the manner designated herein. CITY OF NATIONAL CITY PAGE 4 OF 13 HOME -DEED OF TRUST 13. Governing Law, Severability. The state and local laws applicable to this Deed of Trust shall be the laws of the jurisdiction in which the Property is located. The foregoing sentence shall not limit the applicability of federal law to this Deed of Trust. In the event that any provision or clause of this Deed of Trust or the HOME Note conflicts with applicable law, such conflict shall not affect other provisions of this Deed of Trust or the HOME Note which can be given effect without the conflicting provision and, to this end, the provisions of this Deed of Trust and the HOME Note are declared to be severable. As used herein, "costs," "expenses" and "attorneys' fees" include all sums to the extent not prohibited by applicable law or limited herein. 14. Borrower's Copy. Borrower shall be furnished a conformed copy of the HOME Note and this Deed of Trust at the time of execution or after recordation hereof. 15. Due on Sale, Breach or 30-Years. (a) Payment. Borrower shall pay principal and all accrued interest (either simple interest or default interest, as the case may be) on the HOME Note, in one lump sum, to Lender upon the earliest of: (1) a Sale (as defined in Section 15(b), below); (2) a default after completion of the applicable acceleration procedures set forth in Section 16, below; or (3) thirty (30) years from the date of the HOME Note. Borrower shall make any payments atthe City of National City Finance Department's office Located at 1243 National City Boulevard, National City, California 91950, or such other place as designated by Lender. (d) Sale Defined. The following shall all be considered transfers or sales of the Property and shall be referred to herein generally as a "Sale": (i) all or any part of the Property or any interest in the Property is sold, conveyed or transferred; (ii) if Borrower is not a natural person and a beneficial interest in Borrower is sold, conveyed or transferred; (iii) all or any part of the Property is refinanced or further encumbered, except as otherwise allowed by law; (iv) Borrower does not occupy the Property as his, her, or their, primary residence; (v) the leasing or renting of all or any part of the Property; (vi) any material breach of the HOME Note, the Declaration, this Deed of Trust, or any other agreement or obligation secured by the property; or (vii) the filing of bankruptcy by the Borrower. Notwithstanding the foregoing, a refmancing of the Property shall not be considered a default, provided the Lender provides written consent to Borrower prior to the refinancing, which consent may be granted or withheld in the sole and absolute discretion of the Lender. (c) No Assumption of Note. The HOME Note may not be assumed by any person, except as otherwise allowed by law. NON -UNIFORM COVENANTS Borrower and Lender further covenant and agree as follows: 16. Acceleration (Default), Remedies. Upon Borrower's default (or breach) of this Deed of Trust, the HOME Note, Declaration, or any other document secured by this Deed of Trust, the Declaration and/or the Property, Lender, prior to acceleration, shall give notice to Borrower as provided in Section 12 hereof specifying: CITY OF NATIONAL CITY PAGE 5 OF 13 HOME -DEED OF TRUST (a) the breach; (b) the action required to cure such breach; (c) a date, not less than ten (10) days from the date the notice is mailed to Borrower, by which such breach must be cured; and (d) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the notice, Lender, at Lender's option, may declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this Section 16, including, but not limited to, reasonable attorneys' fees. If Lender invokes power of sale, Lender shall execute or cause Trustee to execute a written notice of the occurrence of an event of default and of Lender's election to cause the Property to be sold and shall cause such notice to be recorded in each county in which the Property or some part thereof is located. Lender or Trustee shall mail copies of such notice in the manner prescribed by applicable law. Trustee shall give public notice of sale to the persons and in the manner prescribed by law. After the lapse of such time as may be required by applicable law, Trustee, without demand on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels and in such order as Trustee may determine. Trustee may postpone sale of all or any parcel of the Property by public announcement at the time and place of any previously scheduled sale. Lender or Lender's designee may purchase the Property at any sale. Trustee shall deliver to the purchaser Trustee's deed conveying the Property so sold without any covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale in the following order: (1) to all reasonable costs and expenses of the sale, including, but not limited to. reasonable Trustee's and attorneys' fees and costs of title evidence; (2) to all sums secured by this Deed of Trust; and (3) the excess, if any, to the person or persons legally entitled thereto. 17. Borrower's Right to Reinstate. CITY OF NATIONAL CITY PAGE 6 OF 13 HOME -DEED OF TRUST (a) Curable Breach. Notwithstanding Lender's acceleration of the sums secured by this Deed of Trust due to Borrower's breach (default), Borrower shall have the right to have any proceedings begun by Lender to enforce this Deed of Trust discontinued at any time prior to five (5) days before the sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of a judgment enforcing this Deed of Trust if: (1) Borrower pays Lender all sums which would be then due under this Deed of Trust and the HOME Note had no acceleration occurred; (2) Borrower cures all breaches of any other covenants or agreements of Borrower contained in this Deed of Trust; (3) Borrower pays all reasonable expenses incurred by Lender and the Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust, including, but not limited to, reasonable attorneys' fees; and (4) Borrower takes such action as Lender may reasonably require to assure that the lien of this Deed of Trust, Lender's interest in the Property and Borrower's obligation to pay the sums secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by Borrower as set forth in this Section 17(a), this Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred. (b) Non -Curable Breach. (1) Failure to Occupy/Renting Out the Property is a Violation of Law. Borrower hereby acknowledges that the loan evidenced by the HOME Note and secured by this Deed of Trust was funded by Lender using U.S. Department of Housing and Urban Development ("HUD") Home Investments Partnership Act ("HOME") funds. Section 215 of the HOME Investment Partnerships Act (42 U.S.C. § 12745) and the HOME program regulations (24 C.F.R. §92.254) require Borrower to occupy the Property as Borrower's principal residence. Renting out the Property (in whole or in part) and/or Borrower's failure to occupy the Property as Borrower's principal residence is a violation of State of California and Federal law (in addition to being a violation of the HOME Note, Declaration and this Deed of Trust). Lender is obligated by Federal law to enforce the provisions of the HOME program, Lender's failure to do so would jeopardize the Lender's ability to obtain additional HOME funds from HUD and help other low-income families to obtain affordable housing. (2) Failure to Occupy/Renting Out the Property Materially Impairs Lender's Security. Borrower hereby acknowledges and agrees that renting out the Property (in whole or in part) and/or Borrower's failure to occupy the Property as Borrower's principal residence, materially impairs the Lender's security for the loan and the Lender's ability to obtain additional HOME funds from HUD and help other low-income families to obtain affordable housing. Borrower further acknowledges that if the Property is rented out (in whole or in part) and/or Borrower fails to occupy the Property as Borrower's principal residence, then during any such period the Property will not CITY OF NATIONAL CITY PAGE 7 OF 13 HOME -DEED OF TRUST qualify as "affordable housing" and the Lender. may be in breach of its obligations to HUD and therefore the Lender's security for the loan will be materially impaired. (3) Failure to Occupy/Renting Out the Property is a Non -Curable Breach. Borrower hereby acknowledges and agrees that renting out the Property (in whole or in part) and/or Borrower's failure to occupy the Property as Borrower's principal residence, will be a non -curable breach and the Lender shall have the right to accelerate the loan and foreclose on the Property as provided herein. Notwithstanding anything to the contrary set forth in this Deed of Trust, Borrower agrees that in the event Borrower rents out the Property and/or fails to occupy the Property as Borrower's principal residence, Borrower shall not have the right to cure the breach and reinstate the loan, this Deed of Trust or the obligations secured hereby. (4) Borrower's Waiver. Borrower hereby knowingly waives and relinquishes any and all legal and/or contractual rights Borrower may have to cure or otherwise reinstate this Deed of Trust and the obligations secured hereby, in the event that Property is rented out (in whole or in part) and/or Borrower fails to occupy the Property as Borrower's principal residence. (5) Representation of Comprehension. Borrower acknowledges and agrees that Lender has advised Borrower (and each of them if there is more than one Borrower) to retain an attorney to represent Borrower with respect to the loan secured by this Deed of Trust. By executing this Deed of Trust, Borrower (and each of them if there is more than one Borrower) represents that: (i) Borrower fully understands and accepts the teens of this Deed of Trust, the HOME Note and Declaration; (ii) Borrower has relied upon the legal advice of Borrower's attorneys or that Borrower has freely and independently chosen not to seek the advice of an attorney; (iii) that neither the Lender nor its attorneys represents Borrower; (iv) that Borrower has had a full and ample opportunity to consult with any other professionals of Borrower's choice in connection with the rights and liabilities created by this Deed of Trust, the HOME Note and Declaration; (v) that Borrower does not have any questions with regard to the legal import of any term, word, phrase, or portion of this Deed of Trust, the HOME Note or Declaration, or any of the foregoing documents in their entireties; and (vi) Borrower accepts the terms of this Deed of Trust, the HOME Note and Declaration as written. 18. Assignment of Rents; Appointment of Receiver; Lender in Possession. As additional security hereunder, upon acceleration of the HOME Note or abandonment of the Property, Lender, in person, by agent or by judicially appointed receiver shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property including those past due. All rents collected by Lender or the receiver shall be applied first to payment of the cost of management of the Property and collection of rents, including, but not limited to, receiver's fees, premiums on receiver's bonds and reasonable attorneys' fees, and then to the sums secured by this Deed of Trust. Lender and the receiver shall be liable to account only for those rents actually received. 19. Reconveyance. Upon satisfaction of both of the following conditions: (i) payment of all sums secured by this Deed of Trust and (ii) termination of the Declaration, Lender shall request Trustee to reconvey the Property and will surrender this Deed of Trust and all notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. CITY OF NATIONAL CITY PAGE 8 OF 13 HOME -DEED OF TRUST 20. Substitute Trustee. Lender, at Lender's option, may from time to time appoint a successor trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by Lender and recorded in the office of the Recorder of the county where the Property is located. The instrument shall contain the name of the original lender, Trustee and Borrower, the book and page where this instrument is recorded, and the name and address of the successor trustee. The successor trustee shall, without conveyance of the Property, succeed to all the title, power and duties conferred upon the Trustee herein and by applicable law. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution. 21. Request for Notices. Borrower requests that copies of the notice of sale be sent to Borrower's address which is the Property Address. 22. Statement of Obligation. Lender may charge a fee not to exceed the amount allowed by law for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California. 23. Covenants, Conditions and Restrictions. The Property is subject to the Declaration which is not attached hereto but is incorporated herein by reference. Borrower acknowledges receipt of the Declaration and agrees, for himself, his heirs, successors and assigns to be bound by the same. The obligations of Borrower under the Declaration shall be independent of, and in addition to, Borrower's obligations under the HOME Note, and repayment of the HOME Note shall not terminate or otherwise affect the Declaration. 24. Representations and Warranties of Borrower. Borrower represents and warrants, and a - violation thereof shall constitute a default/breach of this Deed of Trust, to the Lender as follows: (a) Annual Gross Income. Borrower's annual gross income, including the income of any co -purchasers or co -tenants, at the time of the execution of this Deed of Trust does not exceed eighty percent (80%) of the area median income for the San Diego - Carlsbad -San Marcos Metropolitan Statistical Area, as determined by HUD. (b) Principal Place of Residence. For so long as this Deed of Trust is recorded against the Property, Borrower will reside in the Property as Borrower's principal place of residence. The Borrower shall be considered as occupying the Property as a principal place of residence if the Borrower is living on the Property for at least ten (10) months out of each calendar year. Borrower agrees not to neglect, sublet, lease or rent out all or any portion of the Property during such period. (c) Liquid Assets. At the time of the execution of this Deed of Trust, Borrower, including any co -purchasers or co -tenants, and any other household members, does not hold, directly or indirectly, "liquid assets", as defined below, whose aggregate value exceeds $25,000 As used herein, the term "liquid assets" refers to cash and assets which are readily convertible to cash within a reasonable period, including but not limited to savings and checking accounts, certificates of deposit of any term, marketable securities, money market and similar accounts, mutual fund shares, and insurance policy cash values. The term "liquid assets" shall not include retirement funds which are not readily accessible or which cannot be accessed by the buyer CITY OF NATIONAL CITY PAGE 9 OF 13 HOME -DEED OF TRUST without the buyer incurring a penalty. (d) Not a Full -Time Student. Borrower is not, and none of the co -purchasers or co- tenants of Borrower are, a full-time student, or a household comprised exclusively of persons who are full-time students, unless such persons are married and eligible to file a joint federal income tax return._ The term "full-time student" shall be defined as any person who will be or has been a full-time student during five calendar months of the calendar year in question at an educational institution (other than a correspondence school) with regular faculty and students. (e) Not a Student Dependent. Borrower is not, and none of the co -purchasers or co- tenants of Borrower are, a student dependent as defined in the U.S. Internal Revenue Code, unless the taxpayer (upon whom the student in question is dependent) resides in the Property. Not an Owner of Real Property. Borrower does not, and none of the co -purchasers of Borrower, own any real property at the time of escrow closing for the subject Property. First -Time Home Buyer, Displaced Homemaker or Single Parent. Borrower satisfies at least one of the following criteria: (1) Borrower is a first-time home buyer; that is, he or she has not owned a home within the three-year period immediately preceding the date of this Deed of Trust; (2) Borrower is a displaced homemaker as defined in 24 C.F.R. §92.2; or (3) Borrower is a single parent as defined in 24 C.F.R. §92.2. 25. Request for Notice of Default. Lender requests that copies of notices of foreclosure from the holder of any lien which has priority over this Deed of Trust be sent to Lender's address, as set forth on page 1 of this Deed of Trust, as provided by Section 2924b of the Civil Code of California. 26. Refinancing. Neither the Property, nor any portion thereof, shall be refinanced without the written consent of the Lender, except as otherwise allowed by law. The Lender may withhold any such consent in its sole and absolute discretion, nothing contained herein shall obligate the Lender to agree to Borrower's request to refinance the Property or any portion thereof. 27. Severability. If any provision of this Deed of Trust is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this Deed of Trust and the remaining provisions shall continue in full force and effect. 28. Usury Savings Clause. If a court of competent jurisdiction determines, by way of final unappealable order or judgment that the interest rate charged under the HOME Note is usurious, CITY OF NATIONAL CITY PAGE 10 OF 13 HOME -DEED OF TRUST then such rate shall automatically and retroactively be reduced to the maximum rate allowed under applicable law. 29. Waiver by Lender. Any provision hereof, including without limitation, the requirement that Borrower occupy the Property, may be waived only with the advance written approval of the Lender and HUD for good cause shown. 30. Subordination of Deed of Trust. Borrower concurrently has executed a deed of trust or mortgage in favor of MANN MORTGAGE LLC ("Senior Deed of Trust"). This Deed of Trust is subordinate to the Senior Deed of Trust on the Property, which the Senior Deed of Trust is senior in recording priority to this Deed of Trust. Any party, and its successors and assigns, receiving title to the Property through a trustee's sale, judicial foreclosure sale, or deed in lieu of foreclosure of such Senior Deed of Trust, or assignment of the Senior Deed of Trust to the Secretary of U.S. Department of Housing and Urban Development, and any conveyance or transfer thereafter, shall receive title free and clear of the provisions of this Deed of Trust. 31. HOME Period. The loan evidenced by the HOME Note and secured by this Deed of Trust was funded by Lender using U.S. Department of Housing and Urban Development ("HUD") Home Investments Partnership Act ("HOME") funds. The HOME program regulations (24 C.F.R. Part 92), apply for a period of 15 years, from the date of recordation of this Deed of Trust. Beginning 15 years after the date of recordation of this Deed of Trust, and for the remainder of the term of the HOME Note, the Property will continue to be subject to this Deed of Trust, but shall no longer be subject to the HOME program regulations. Date: Date: IN WITNESS WHEREOF, Borrower has executed this Deed of Trust. wer: Jose A. Lojero 2171,/an2g S,.��o4 Borrower: Blanca Chavez CITY OF NATIONAL CITY PAGE 11 OF 13 HOME -DEED OF TRUST EXHIBIT "A" The land hereinafter referred to is situated in the City of National City, County of San Diego, State of CA, and is described as follows: A Condominium Comprised of: Parcel 1: An undivided one forty-eight (1/48th) interest in and to Lots 1 and 2 of Las Palmas Park Villas, in the City of National City, County of San Diego, State of California, according to Map thereof No. 9128, Recorded in the office of the County Recorder of San Diego County, on February 27, 1979. Excepting therefrom all living units, storage rooms and garages as shown upon that certain Las Palmas Park Villas Condominium Plan Recorded in the office of the County Recorder of San Diego County on February 7, 1980, Recorders File No. 80-044195. And further excepting therefrom the following: The right to possession of all those areas designated as patios, balconies, and assigned parking spaces as shown on said Condominium Plan referred to above. Parcel 2: Living Unit No. 45, Garage No. 35 and Storage Room, as shown upon the Condominium Plan referred to above. Parcel 3: The exclusive right to use, possession and occupancy of those portions of Lots 1 and 2 described in Parcel 1 above, designated as assigned Parking Space, Patio 45 and Balcony, on the Condominium Plan referred to above, which right is appurtenant to Parcels 1 and 2 above described. Parcel 4: A non-exclusive easement for ingress, egress and recreational use over the Common Areas of Lots 3 and 4 as shown on Map No. 9128 filed in the Office of the County Recorder of San Diego, California, on February 27, 1979 which easement is appurtenant to Parcels 1, 2 and 3 described above. This easement shall become effective as to each of said Lots 3 and 4, respectively, upon recordation of a Declaration of Annexation declaring such Lots, respectively, to be subject to the Declaration of Covenants, Conditions and Restrictions to which reference is hereafter made or a separate Declaration of Covenants, Conditions and Restrictions which requires the owners of said Lots, respectively, to be members of the Las Palmas Park Villas Property Owners Association, all as more fully set forth in the Declaration to which reference is hereafter made. The Common Area referred to herein as to each of said Lots shall be the same as shown and described on the Condominium Plan referred to above and any amendments or superceding Condominium Plan, excepting therefrom any residential and garage buildings thereon and any portion thereof which is designated as an Exclusive Use Area. APN: 563-460-05-45 CITY OF NATIONAL CITY PAGE 12 OF 13 HOME -DEED OF TRUST A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. ACKNOWLEDGMENT State of California County of San Diego ) On i - r 20 /7 before me, , notary public personally appeared 5 50 4 �,�'tz9 $-**"'`-09 AzeleiEC-/ 6 ✓,!`t who proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity on behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public (Seal) M. S. MARSHALL COMM. #2143187 rn NOTARY PUBLIC *CALIFORNIA g SAN DIEGO COUNTY Commission Expires Mar.15, 2020 CITY OF NATIONAL CITY DEED OF TRUST ACKNOWLEDGMENT RECORDING REQUESTED BY TITLE365 FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE 27383 Recording Requested By And When Recorded Mail to: City of National City Housing, Grants, and Asset Management 1243 National City Boulevard National City, CA 91950 DOC# 2017-0092830 I IIIII IIIII III II IIIII IIII NII II III II IIIII IIIII IIIII IIIII IIIII lilt IIII Feb 27, 2017 04:09 PM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $42.00 PAGES: 10 SPACE ABOVE THIS LINE FOR RECORDER'S USE [RECORD AFTER '1'H1:1ST DEED OF TRUST] DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS (HUD HOME Program 3% Deferred) City Loan No. 17NC3 THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ("Declaration") is made as of this 24th day of February, 2017, by Jose A. Lojero, a Married Man as his sole and separate property and Blanca Araceli Chavez, a single woman as joint tenants (hereafter collectively and/or individually `Borrower"), in connection with that certain parcel of real property ("Property") located in the City of National City, County of San Diego, California, described in Exhibit "A" attached hereto and incorporated herein by reference. RECITALS ' A. Concurrently with the recordation of this Declaration, the City of National City ("Lender") is funding a loan to Borrower ("HUD HOME Loan") evidenced by a promissory note ("HOME Note"). The HUD HOME Loan is secured by a deed of trust ("Deed of Trust") made by Borrower, as trustor, in favor of the Lender as beneficiary. The Lender is making the HUD HOME Loan to aid Borrower, who is a first-time homebuyer, in acquiring the Property. B. The Deed of Trust and HUD HOME Loan and were conditioned in part upon the recordation of this Declaration against the Property. NOW, THEREFORE, Borrower hereby declares that the Property shall be subject to the covenants, conditions and restrictions set forth below: 1. Representations and Warranties of Borrower. Borrower declares, represents and warrants CITY OF NATIONAL CITY PAGE 1 OF10 HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS RECORDING REQUESTED BY TJTLE365 FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE 27383 Recording Requested By And When Recorded Mail to: City of National City Housing, Grants, and Asset Management 1243 National City Boulevard National City, CA 91950 SPACE ABOVE THIS LINE FOR RECORDER'S USE [RECORD AFTER THE 1ST DEED OF TRUST] DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS (HUD HOME Program 3% Deferred) City Loan No. 17NC3 THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ("Declaration") is made as of this 24th day of February, 2017, by Jose A. Lojero, a Married Man as his sole and separate property and Blanca Araceli Chavez, a single woman as joint tenants (hereafter collectively and/or individually "Borrower"), in connection with that certain parcel of real property ("Property") located in the City of National City, County of San Diego, California, described in Exhibit "A" attached hereto and incorporated herein by reference. RECITALS A. Concurrently with the recordation of this Declaration, the City of National City ("Lender") is funding a loan to Borrower ("HUD HOME Loan") evidenced by a promissory note ("HOME Note"). The HUD HOME Loan is secured by a deed of trust ("Deed of Trust") made by Borrower, as trustor, in favor of the Lender as beneficiary. The Lender is making the HUD HOME Loan to aid Borrower, who is a first-time homebuyer, in acquiring the Property. B. The Deed of Trust and HUD HOME Loan and were conditioned in part upon the recordation of this Declaration against the Property. NOW, THEREFORE, Borrower hereby declares that the Property shall be subject to the covenants, conditions and restrictions set forth below: 1. Representations and Warranties of Borrower. Borrower declares, represents and warrants CITY OF NATIONAL CITY PAGE 1 OF10 HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS to the Lender and agrees as follows: (a) Income Eligibility Requirements -Annual Gross Income (§92.203). Borrower's annual gross income, including the income of any co -purchasers or co -tenants, at the time of the execution of this Declaration does not exceed eighty percent (80%) of the Area Median Income for the San Diego -Carlsbad -San Marcos Metropolitan Statistical Area, as adjusted for family size, as determined by HUD. (b) Principal Place of Residence. For so long as the Deed of Trust is recorded against the Property, Borrower will reside in the Property as Borrower's principal place of residence. The Borrower shall be considered as occupying the Property as a principal place of residence if the Borrower is living in the Property for at least ten (10) months out of each calendar year. Borrower agrees not to neglect, sublet, lease or rent out all or any portion of the Property during such period. (c) Ownership Interest. The Borrower has fee simple title on the Property (24 CFR Part 92.254). (d) Liquid Assets. At the time of the execution of this Declaration, Borrower, including any co -purchasers or co -tenants and all other household members, does not hold, directly or indirectly, "liquid assets", as defined below, whose aggregate value exceeds $25,000. As used herein, the term "liquid assets" refers to cash and assets which are readily convertible to cash within a reasonable period, including but not limited to savings and checking accounts, certificates of deposit of any term, marketable securities, money market and similar accounts, mutual fund shares, and insurance policy cash values. The term "liquid assets" shall not include retirement funds which are not readily accessible or which cannot be accessed by the buyer without the buyer incurring a penalty. (e) Not a Full -Time Student. Borrower is not, and none of the co -purchasers or co- tenants of Borrower are, a full-time student, or a household comprised exclusively of persons who are full-time students, unless such persons are married and eligible to file a joint federal income tax return. The term "full-time student" shall be defined as any person who will be or has been a full-time student during five calendar months of the calendar year in question at an educational institution (other than a correspondence school) with regular faculty and students. (f) Not a Student Dependent. Borrower is not, and none of the co -purchasers or co- tenants of Borrower are, a student dependent as defined in the U.S. Internal Revenue Code, unless the taxpayer (upon whom the student in question is dependent) resides in the Property. (g) Not an Owner of Real Property. Borrower does not, and none of the co -purchasers of Borrower, own any real property at the time of escrow closing for the subject Property. (h) First -Time Home Buyer, Displaced Homemaker or Single Parent. Borrower satisfies at least one of the following criteria: (1) Borrower is a first-time home buyer; that is, he or she has not owned a home within the three-year period immediately preceding the date of this Declaration; CITY OF NATIONAL CITY PAGE 2 OF10 HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS (2) Borrower is a displaced homemaker as defined in 24 C.F.R. §92.2; or (3) Borrower is a single parent as defined in 24 C.F.R. §92.2. (i) Homebuyer Counseling. Borrower has attended a HUD -approved Homebuyer Counseling session. 2. Due on Sale, Default, or 30-Years. (a) Borrower shall pay principal and all accrued interest (either simple interest or default interest, as the case may be) on the HOME Note, in one lump sum, to Lender upon the earliest of: (1) a Sale (as defined in Section 2(b), below); (2) a default after completion of the applicable acceleration procedures set forth in Section 3, below; or (3) thirty (30) years from the date first written above. Borrower shall make any payments at the City of National City Finance Department's office located at 1243 National City Boulevard, National City, California 91950, or such other place as designated by Lender (b) Sale Defined. The following shall all be considered transfers or sales of the Property and shall be referred to herein generally as a "Sale": (i) all or any part of the Property or any interest in the Property is sold, conveyed or transferred; (ii) if Borrower is not a natural person and a beneficial interest in Borrower is sold, conveyed or transferred; (iii) all or any part of the Property is refinanced or further encumbered, except as otherwise allowed by law; (iv) Borrower does not occupy the Property as his, her, or their, primary residence; (v) the leasing or renting of all or any part of the Property; (vi) any material breach of this Declaration, the HOME Note or Deed of Trust; or (vii) the filing of bankruptcy by the Borrower. Notwithstanding the foregoing, a refinancing of the Property shall not be considered a default, provided the Lender provides written consent to Borrower prior to the refinancing, which consent may be granted or withheld in the sole and absolute discretion of the Lender. (c) No Assumption of Note. The HOME Note may not be assumed by any person, except as otherwise allowed by law. 3. Acceleration (Default). (a) Acceleration, Remedies. Upon Borrower's default of this Declaration, the HOME Note, the Deed of Trust, or any other document secured by this Declaration, the Deed of Trust and/or the Property, Lender shall give notice to Borrower prior to acceleration, such notice shall include: (1) a description of the breach; CITY OF NATIONAL CITY PAGE 3 OF10 HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS (2) the action required to cure such breach (if any); (3) a date, not less than ten (10) days from the date the notice is mailed to Borrower, by which such breach must be cured; and (4) a statement that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by the Deed of Trust and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the notice, Lender, at Lender's option, may declare all of the sums secured by the Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law, including, but not limited to, as provided in and pursuant to the procedure set forth in the Deed of Trust. Lender shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this Section 3, including, but not limited to, reasonable attorneys' fees. (b) Borrower's Right to Reinstate. (1) Curable Breach. Notwithstanding Lender's acceleration of the sums secured by the Deed of Trust due to Borrower's breach, Borrower shall have the right to have any proceedings begun by Lender to enforce the Deed of Trust discontinued at any time prior to five (5) days before the sale of the Property pursuant to the power of sale contained in the Deed of Trust or at any time prior to entry of a judgment enforcing the Deed of Trust if: (A) Borrower pays Lender all sums which would be then due under the HOME Note and the Deed of Trust had no acceleration occurred; (B) Borrower cures all breaches of any other covenants or agreements of Borrower contained in the Deed of Trust; (C) Borrower pays all reasonable expenses incurred by Lender and the trustee in enforcing the covenants and agreements of Borrower contained in the Deed of Trust, including, but not limited to, reasonable attorneys' fees; and (D) Borrower takes such action as Lender may reasonably require to assure that the lien of the Deed of Trust, Lender's interest in the Property and Borrower's obligation to pay the sums secured by the Deed of Trust shall continue unimpaired. Upon such payment and cure by Borrower as set forth in this Section 3(b) (1), the Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred. (2) Non -Curable Breach. CITY OF NATIONAL CITY PAGE 4 OF10 HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS (A) Failure to Occupv/Renting Out the Property is a Violation of Law. Borrower hereby acknowledges that the HUD HOME Loan evidenced by the HOME Note and secured by the Deed of Trust and this Declaration was funded by Lender using U.S. Department of Housing and Urban Development ("HUD") Home Investments Partnership Act ("HOME") funds. Section 215 of the HOME Investment Partnerships Act (42 U.S.C. § 12745) and the HOME program regulations (24 C.F.R. §92.254) require Borrower to occupy the Property as Borrower's principal residence. Leasing or renting out the Property in whole or in part and/or Borrower's failure to occupy the Property as Borrower's principal residence is a violation of State of California and Federal law (in addition to being a violation of this Declaration). Lender is obligated by Federal law to enforce the provisions of the HOME program, Lender's failure to do so would jeopardize Lender's ability to obtain additional HOME funds from HUD and help other low- income families to obtain affordable housing. (B) Failure to Occupy/Renting Out the Property Materially Impairs Lender's Security. Borrower hereby acknowledges and agrees that renting out the Property (in whole or in part) and/or Borrower's failure to occupy the Property as Borrower's principal residence, materially impairs Lender's security for the HUD HOME Loan and Lender's ability to obtain additional HOME funds from HUD and help other low-income families to obtain affordable housing. Borrower further acknowledges that if the Property is rented out (in whole or in part) and/or Borrower fails to occupy the Property as Borrower's principal residence, then during any such period the Property will not qualify as "affordable housing" and Lender may be in breach of its obligations to HUD and therefore the Lender's security for the HUD HOME Loan will be materially impaired. (C) Failure to Occupy/Renting Out the Property is a Non -Curable Breach. Borrower hereby acknowledges and agrees that renting out the Property (in whole or in part) and/or Borrower's failure to occupy the Property as Borrower's principal residence, will be a non -curable breach and Lender shall have the right to accelerate the HUD HOME Loan and foreclose on the Property as provided herein. Notwithstanding anything to the contrary set forth in this Declaration, Borrower agrees that in the event Borrower rents out the Property (in whole or in part) and/or fails to occupy the Property as Borrower's principal residence, Borrower shall not have the right to cure the breach and reinstate the HUD HOME Loan, the Deed of Trust or the obligations secured thereby. (D) Borrower's Waiver. Borrower hereby knowingly waives and relinquishes any and all legal and/or contractual rights Borrower may have to cure or otherwise reinstate the Deed of Trust and the obligations secured thereby, in the event that Property is rented out (in whole or in part) and/or Borrower fails to occupy the Property as Borrower's principal residence. (E) Representation of Comprehension. Borrower acknowledges and agrees that Lender has advised Borrower (and each of them if there is more than one Borrower) to retain an attorney to represent Borrower with respect to this Declaration. By executing this Declaration, Borrower (and each of them if there is more than one Borrower) represents that: (i) Borrower fully understands and accepts the terms of this Declaration, the HOME Note and Deed of Trust; (ii) Borrower has relied upon the legal advice of Borrower's attorneys or that Borrower has freely and independently chosen not to seek the advice of an attorney; (iii) that neither the CITY OF NATIONAL CITY PAGE 5 OF10 HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Lender nor its attorneys represents Borrower; (iv) that Borrower has had a full and ample opportunity to consult with any other professionals of Borrower's choice in connection with the rights and liabilities created by this Declaration, the HOME Note and Deed of Trust; (v) that Borrower does not have any questions with regard to the legal import of any term, word, phrase, or portion of this Declaration, the HOME Note and Deed of Trust, or any of the foregoing documents in their entireties; and (vi) Borrower accepts the terms of this Declaration, the HOME Note and Deed of Trust as written. 4. Term. This Declaration shall expire upon the earlier of the foreclosure of any deed of trust or mortgage on the Property made in favor of or held by an institutional lender or investor that is senior in recording priority to this Declaration or payment in full of the HOME Note. 5. Covenant Against Discrimination. Borrower covenants on behalf of itself and its successors and assigns, and each successor in interest to the Property, not to discriminate against any prospective purchaser of the Property on the basis of race, religion, sex or national origin. 6. Enforcement. Borrower expressly agrees and declares that Lender or any successor public agency is a proper party and shall have standing to initiate and pursue any and all actions or proceedings, at law or in equity to enforce the provisions hereof and/or to recover damages for any default hereunder and/or to enforce the terms of this Declaration. Further, Lender or any successor public agency shall be the proper party to waive, relinquish, release or modify the rights, covenants, obligations or restrictions contained in or arising under this Declaration. 7. Attorneys' Fees. Upon the breach of the terms of this Declaration, the HOME Note or Deed of Trust, Borrower agrees to pay Lender any and all attorneys' fees, court costs, trustee fees, and any and all other fees and costs incurred by Lender as a result of said breach and/or default. 8. Severability. In the event that any provision or covenant of this Declaration is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this Declaration and the remaining provisions shall continue in full force and effect. 9. Covenants Run With The Land. The covenants contained herein shall constitute "covenants running with the land" pursuant to Civil Code Sections 1460, 1462, 1463, 1464, 1465, 1467 and 1468, to the extent applicable, and shall bind the Property and every person having an interest therein during the term of this Declaration, including Borrower and its successors, heirs and assigns. Borrower agrees for itself and its successors that, in the event that, for any reason whatsoever, a court of competent jurisdiction determines that the foregoing covenants do not run with the land, such covenants shall be enforced as equitable servitudes against the Property. 10. Recordation. This Declaration shall be recorded in the Office of County Recorder of San Diego, California. 11. Remedies Cumulative. Lender shall have the right, in the event of any breach of any such agreement or covenant, to exercise all the rights and remedies, and to maintain any actions at law or suit in equity or other proper proceedings to redress the breach of agreement or covenant. CITY OF NATIONAL CITY PAGE 6 OFIO HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS 12. Headings. The headings used in this Declaration are for convenience only and are not to be used to interpret the meaning of any of the provisions of this Declaration. 13. Liberal Construction. The provisions of this Declaration shall be liberally construed to effectuate its purpose. Failure to enforce any provision of this Declaration shall not constitute a waiver of the right to enforce the provision later. 14. Number; Gender. The singular shall include the plural and the plural the singular, unless the context requires the contrary; and the masculine, feminine and neuter shall include the masculine, feminine or neuter, as the context requires. 15. Exhibits. Any exhibits referenced herein and attached to this Declaration are hereby incorporated by reference. 16. Notices to Mortgagees of Record. On any loss to the Property, if such loss exceeds One Thousand Dollars ($1,000.00), notice in writing of such loss shall be given to each mortgagee of record. 17. Fire and Extended Coverage Insurance. Borrower shall obtain and maintain a policy of fire insurance for the full insurable value of all the improvements within the Property. The form, content and term of the policy, its endorsements and the issuing company must be satisfactory to all mortgagees. If more than one mortgagee has a loan of record against the Property, or any part thereof, the policy and endorsement shall meet the maximum standards of the various mortgagees represented in the Property. The policy shall contain an agreed amount endorsement or its equivalent, an increased cost of construction endorsement, vandalism and malicious mischief coverage, a special form endorsement and a determinable cash adjustment clause or a similar clause to permit cash settlements covering the full value of the improvements in case of partial destruction and a decision not to rebuild. The policy shall name as insureds the owners, Borrower and the mortgagees, as long as their respective interests may appear. "Mortgagees", as used herein, includes beneficiaries under a deed of trust. 18. Binding Effect. This Declaration shall inure to the benefit of and be binding upon the successors and assigns of Borrower and the heirs, personal representatives, grantees, tenants, successors -in -interest or assigns of the owners. 19. Certifications by Borrower. Not less frequently than once a year Borrower shall certify to Lender that Borrower: (a) Complies with all the terms and conditions of this Declaration and the Deed of Trust; and (b) Has obtained and does maintain fire and casualty insurance on the Property satisfactory to Lender, including a certificate of insurance, of which Lender shall be a holder, from the insurance company providing coverage satisfactory to Lender which may not be cancelled by the insurance company without thirty (30) days advance notice of cancellation. CITY OF NATIONAL CITY PAGE 7 OF10 HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS 20. Declaration Subordinate. This Declaration is subordinate to any deed of trust or mortgage on the Property, which deed of trust is senior in recording priority to this Declaration. Any party, and its successors and assigns, receiving title to the Property through a trustee's sale, judicial foreclosure sale, or deed in lieu of foreclosure of such senior deed of trust or mortgage, and any conveyance or transfer thereafter, shall receive title free and clear of the provisions of this Declaration. 21. Refinancing. Neither the Property, nor any portion thereof, shall be refinanced without the written consent the Lender, except as otherwise allowed by law. The Lender may withhold any such consent in its sole and absolute discretion, nothing contained herein shall obligate Lender to agree to Borrower's request to refinance the Property or any portion thereof. 22. Waiver by Lender. Any provision hereof, including without limitation, the requirement that Borrower occupy the Property, may be waived only with the advance written approval of the Lender and HUD for good cause shown. 23. HOME Period. The HUD HOME Loan was funded by Lender using U.S. Department of Housing and Urban Development ("HUD") Home Investments Partnership Act ("HOME") funds. The HOME program regulations (24 C.F.R. Part 92), apply for a period of 15 years, from the date of recordation of the Deed of Trust. Beginning 15 years after the date of recordation of the Deed of Trust, and for the remainder of the term of this Declaration, the Property will continue to be subject to the restrictions set forth in this Declaration, but shall no longer be subject to the HOME program regulations. 24. Declaration Independent of HOME Note. The obligations of Borrower under this Declaration shall be independent of, and in addition to, Borrower's obligations under the HOME Note, and repayment of the HOME Note shall not terminate or otherwise affect this Declaration. Date: Date: 2�,2 /7 Borrd r: Jose A. Lojero 16/08///7#(4 Borrower: Blanca Araceli Cha CITY OF NATIONAL CITY HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS PAGE 8 OF10 EXHIBIT "A" Legal Description of the Property Property Address: 1925 Via Las Palmas Unit 45, National City CA 91950 The land hereinafter referred to is situated in the City of National City, County of San Diego, State of CA, and is described as follows: A Condominium Comprised of: Parcel 1: An undivided one forty-eight (1/48th) interest in and to Lots 1 and 2 of Las Palmas Park Villas, in the City of National City, County of San Diego, State of California, according to Map thereof No. 9128, Recorded in the office of the County Recorder of San Diego County, on February 27, 1979. Excepting therefrom all living units, storage rooms and garages as shown upon that certain Las Palmas Park Villas Condominium Plan Recorded in the office of the County Recorder of San Diego County on February 7, 1980, Recorders File No. 80-044195. And further excepting therefrom the following: The right to possession of all those areas designated as patios, balconies, and assigned parking spaces as shown on said Condominium Plan referred to above. Parcel 2: Living Unit No. 45, Garage No. 35 and Storage Room, as shown upon the Condominium Plan referred to above. Parcel 3: The exclusive right to use, possession and occupancy of those portions of Lots 1 and 2 described in Parcel 1 above, designated as assigned Parking Space, Patio 45 and Balcony, on the Condominium Plan referred to above, which right is appurtenant to Parcels 1 and 2 above described. Parcel 4: A non-exclusive easement for ingress, egress and recreational use over the Common Areas of Lots 3 and 4 as shown on Map No. 9128 filed in the Office of the County Recorder of San Diego, California, on February 27, 1979 which easement is appurtenant to Parcels 1, 2 and 3 described above. This easement shall become effective as to each of said Lots 3 and 4, respectively, upon recordation of a Declaration of Annexation declaring such Lots, respectively, to be subject to the Declaration of Covenants, Conditions and Restrictions to which reference is hereafter made or a separate Declaration of Covenants, Conditions and Restrictions which requires the owners of said Lots, respectively, to be members of the Las Palmas Park Villas Property Owners Association, all as more fully set forth in the Declaration to which reference is hereafter made. The Common Area referred to herein as to each of said Lots shall be the same as shown and described on the Condominium Plan referred to above and any amendments or superceding Condominium Plan, excepting therefrom any residential and garage buildings thereon and any portion thereof which is designated as an Exclusive Use Area. APN: 563-460-05-45 CITY OF NATIONAL CITY PAGE 9 OF10 HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego ) On Z" 2-` , 20 / 7 , before me, fr(5 /�/1�25/S�•4L� aa notary public personally appeared O'S� e /J /*ZICAee �/`�i4✓tf who proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity on behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Signature of Notary Public (Seal) comm. #2143187 0, NOTARY PUBLIC 'CALIFORNIA g SAN DIEGO COUNTY Commission Expires Mar. 15, 2020 Aw CITY OF NATIONAL CITY ACKNOWLEDGMENT DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS T C LI FiKI A •-f, NATIONAL airy INCORPORATED DATE: April 24, 2017 TO: City Clerk's Offic FROM: The City of National City MEMORANDUM Angelita Palma, Community Development Specialist II Housing & Economic Development Department SUBJECT: HOME Program FTHB Recorded Documents Loan #17NC3 Please keep the attached HOME Program First Time Homebuyer Program recorded original Deed of Trust on file for Loan # 17NC3 for JOSE LOJERO & BLANCA ARACELI CHAVEZ at 1925 VIA LAS PALMAS #45 in NATIONAL CITY. Declaration of Covenants Conditions and Restrictions Loan #17NC3 Thank you. 1243 National City Blvd; National City, California 91950